Company registration number 02805822 (England and Wales)
SAROVA HOTELS LIMITED
ANNUAL REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
SAROVA HOTELS LIMITED
COMPANY INFORMATION
Directors
A Vohra
R S Vohra
S S Vohra
J S Vohra
Secretary
R S Vohra
Company number
02805822
Registered office
11 Thurloe Place
London
SW7 2RS
Auditor
Mercer & Hole LLP
21 Lombard Street
London
EC3V 9AH
SAROVA HOTELS LIMITED
CONTENTS
Page
Directors' report
1
Directors' responsibilities statement
2
Independent auditor's report
3 - 5
Statement of comprehensive income
6
Balance sheet
7
Statement of changes in equity
8
Notes to the financial statements
9 - 18
SAROVA HOTELS LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 30 JUNE 2023
- 1 -

The directors present their annual report and financial statements for the year ended 30 June 2023.

Principal activities

The principal activity of the company continued to be that of marketing and operating hotels.

Directors

The directors who held office during the year and up to the date of signature of the financial statements were as follows:

A Vohra
R S Vohra
S S Vohra
J S Vohra
Auditor

The auditor, Mercer & Hole LLP, is deemed to be reappointed under section 487(2) of the Companies Act 2006.

Statement of disclosure to auditor

So far as each person who was a director at the date of approving this report is aware, there is no relevant audit information of which the company’s auditor is unaware. Additionally, the directors individually have taken all the necessary steps that they ought to have taken as directors in order to make themselves aware of all relevant audit information and to establish that the company’s auditor is aware of that information.

Small companies exemption

This report has been prepared in accordance with the provisions applicable to companies entitled to the small companies exemption.

On behalf of the board
S S Vohra
Director
19 March 2024
SAROVA HOTELS LIMITED
DIRECTORS' RESPONSIBILITIES STATEMENT
FOR THE YEAR ENDED 30 JUNE 2023
- 2 -

The directors are responsible for preparing the annual report and the financial statements in accordance with applicable law and regulations.

 

Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:

 

 

The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company’s transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.

SAROVA HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT
TO THE MEMBERS OF SAROVA HOTELS LIMITED
- 3 -
Opinion

We have audited the financial statements of Sarova Hotels Limited (the 'company') for the year ended 30 June 2023 which comprise the statement of comprehensive income, the balance sheet, the statement of changes in equity and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 The Financial Reporting Standard applicable in the UK and Republic of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion the financial statements:

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities for the audit of the financial statements section of our report. We are independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the FRC’s Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.

 

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.

 

Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.

Other information

The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.

 

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, based on the work undertaken in the course of our audit:

SAROVA HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAROVA HOTELS LIMITED
- 4 -
Matters on which we are required to report by exception

In the light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we have not identified material misstatements in the directors' report. We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to you if, in our opinion:

 

Responsibilities of directors

As explained more fully in the directors' responsibilities statement, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

Auditor's responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.

The extent to which our procedures are capable of detecting irregularities, including fraud, is detailed below.

Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud

We gained an understanding of the legal and regulatory framework applicable to the company and the industry in which it operates and considered the risk of acts by the company that were contrary to applicable laws and regulations, including fraud. These included, but were not limited to, the Companies Act 2006, employment law, and tax legislation.

We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements and the financial report (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate entries including journals to overstate revenue or understate expenditure and management bias in accounting estimates.

Audit procedures performed by the engagement team included:

 

Owing to the inherent limitations of an audit, there is an unavoidable risk that we may not have detected some material misstatements in the financial statements, even though we have properly planned and performed our audit in accordance with auditing standards. For example, the further removed non-compliance with laws and regulations (irregularities) is from the events and transactions reflected in the financial statements, the less likely the inherently limited procedures required by auditing standards would identify it. In addition, as with any audit, there remained a higher risk of non-detection of irregularities, as these may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal controls. We are not responsible for preventing non- compliance and cannot be expected to detect non-compliance with all laws and regulations.

SAROVA HOTELS LIMITED
INDEPENDENT AUDITOR'S REPORT (CONTINUED)
TO THE MEMBERS OF SAROVA HOTELS LIMITED
- 5 -

A further description of our responsibilities is available on the Financial Reporting Council’s website at: https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.

Use of our report

This report is made solely to the company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the company and the company's members as a body, for our audit work, for this report, or for the opinions we have formed.

Andrew Turner
Senior Statutory Auditor
For and on behalf of Mercer & Hole LLP
20 March 2024
Chartered Accountants
Statutory Auditor
21 Lombard Street
London
EC3V 9AH
SAROVA HOTELS LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
- 6 -
2023
2022
Notes
£
£
Turnover
3
1,800,000
1,800,000
Administrative expenses
(1,597,166)
(1,538,969)
Other operating income
-
0
38,955
Operating profit
4
202,834
299,986
Interest payable and similar expenses
7
(36,202)
(33,374)
Profit before taxation
166,632
266,612
Tax on profit
8
-
0
31,367
Profit for the financial year
166,632
297,979

The profit and loss account has been prepared on the basis that all operations are continuing operations.

SAROVA HOTELS LIMITED
BALANCE SHEET
AS AT 30 JUNE 2023
30 June 2023
- 7 -
2023
2022
Notes
£
£
£
£
Fixed assets
Tangible assets
9
-
0
-
0
Investments
10
1
1
Current assets
Debtors falling due after more than one year
12
4,813,179
4,619,664
Debtors falling due within one year
12
1,256,657
1,610,278
6,069,836
6,229,942
Creditors: amounts falling due within one year
13
(4,587,034)
(4,820,802)
Net current assets
1,482,802
1,409,140
Total assets less current liabilities
1,482,803
1,409,141
Creditors: amounts falling due after more than one year
14
(1,969,159)
(2,062,129)
Net liabilities
(486,356)
(652,988)
Capital and reserves
Called up share capital
18
200,000
200,000
Other reserve
(37,500)
(37,500)
Profit and loss reserves
(648,856)
(815,488)
Shareholders' deficit
(486,356)
(652,988)

These financial statements have been prepared in accordance with the provisions applicable to companies subject to the small companies regime.

The financial statements were approved by the board of directors and authorised for issue on 19 March 2024 and are signed on its behalf by:
S S Vohra
Director
Company Registration No. 02805822
SAROVA HOTELS LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
- 8 -
Share capital
Other reserve
Profit and loss reserves
Total
£
£
£
£
Balance at 1 July 2021
200,000
(37,500)
(1,113,467)
(950,967)
Year ended 30 June 2022:
Profit and total comprehensive income for the year
-
-
297,979
297,979
Balance at 30 June 2022
200,000
(37,500)
(815,488)
(652,988)
Year ended 30 June 2023:
Profit and total comprehensive income for the year
-
-
166,632
166,632
Balance at 30 June 2023
200,000
(37,500)
(648,856)
(486,356)
SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2023
- 9 -
1
Accounting policies
Company information

Sarova Hotels Limited is a private company limited by shares incorporated in England and Wales. The registered office is 11 Thurloe Place, London SW7 2RS.

1.1
Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2006.

The financial statements are prepared in sterling, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest £.

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

The company has taken advantage of the exemption under section 399 of the Companies Act 2006 not to prepare consolidated accounts, on the basis that the group of which this is the parent qualifies as a small group. The financial statements present information about the company as an individual entity and not about its group.

1.2
Going concern

Sarova Hotels Limited collects income via management fees from the hotels within the Sarova Hotels group, and their cash flow forecasts are therefore reliant on the success of the hotels. Trade within those hotels has returned to pre-Covid 19 levels and forecasted performance continues to be strong. true

 

In assessing the appropriateness of the going concern assumption, the Directors have prepared detailed cash flow forecasts for each of hotels extending 12 months from the date of approval of these financial statements. The forecasts take into account the expected hotel occupancy levels and rates based upon known calendar of events and a targeted marketing strategy. The forecasts also take into account anticipated inflationary increase in costs, in particular utility process and staff wages. The forecasts indicate that in any reasonable scenario, the Company has sufficient cash to meet its liabilities as they fall due.

 

1.3
Turnover

Turnover is stated net of value added tax, and represent management fees receivable from other group companies for hotel management services provided in the normal course of business. Turnover is recognised on a monthly basis as the services are provided and according to the performance of those group companies, which is solely derived from hotelier activities from within the UK.

1.4
Tangible fixed assets

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

Depreciation is recognised so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

Equipment
3 years

The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 10 -
1.5
Fixed asset investments

Interests in subsidiaries, associates and jointly controlled entities are initially measured at cost and subsequently measured at cost less any accumulated impairment losses. The investments are assessed for impairment at each reporting date and any impairment losses or reversals of impairment losses are recognised immediately in profit or loss.

A subsidiary is an entity controlled by the company. Control is the power to govern the financial and operating policies of the entity so as to obtain benefits from its activities.

An associate is an entity, being neither a subsidiary nor a joint venture, in which the company holds a long-term interest and where the company has significant influence. The company considers that it has significant influence where it has the power to participate in the financial and operating decisions of the associate.

Entities in which the company has a long term interest and shares control under a contractual arrangement are classified as jointly controlled entities.

1.6
Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

1.7
Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognised in the company's balance sheet when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognised amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortised cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest. Financial assets classified as receivable within one year are not amortised.

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 11 -
Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognised at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest. Financial liabilities classified as payable within one year are not amortised.

 

Debt instruments are subsequently carried at amortised cost, using the effective interest rate method.

 

Trade creditors are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Amounts payable are classified as current liabilities if payment is due within one year or less. If not, they are presented as non-current liabilities. Trade creditors are recognised initially at transaction price and subsequently measured at amortised cost using the effective interest method.

1.8
Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognised as liabilities once they are no longer at the discretion of the company.

1.9
Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the profit and loss account because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

Deferred tax

Deferred tax liabilities are generally recognised for all timing differences and deferred tax assets are recognised to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognised if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.

 

The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realised. Deferred tax is charged or credited in the profit and loss account, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

1.10
Employee benefits

The costs of short-term employee benefits are recognised as a liability and an expense, unless those costs are required to be recognised as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognised in the period in which the employee’s services are received.

 

Termination benefits are recognised immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
1
Accounting policies
(Continued)
- 12 -
1.11
Retirement benefits

Payments to defined contribution retirement benefit schemes are charged as an expense as they fall due.

1.12
Government grants

Government grants are recognised at the fair value of the asset received or receivable when there is reasonable assurance that the grant conditions will be met and the grants will be received.

 

A grant that specifies performance conditions is recognised in income when the performance conditions are met. Where a grant does not specify performance conditions it is recognised in income when the proceeds are received or receivable. A grant recognised before the performance criteria are satisfied is recognised as a liability.

 

During the prior year, the company received government income of £38,955 under the Coronavirus Job Retention Scheme (CJRS). This amount was recognised in other operating income in accordance with the performance accounting policy of accounting for government grants. No such amounts were received this year.

2
Judgements and key sources of estimation uncertainty

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

3
Turnover and other revenue

An analysis of the company's turnover is as follows:

2023
2022
£
£
Turnover analysed by class of business
Management fees
1,800,000
1,800,000
2023
2022
£
£
Other revenue
Coronavirus Job Retention Scheme
-
38,955

Turnover is wholly attributable to the principal activity of the company and arises solely within the United Kingdom.

SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 13 -
4
Operating profit
2023
2022
Operating profit for the year is stated after charging/(crediting):
£
£
Government grants received - furlough income
-
(38,955)
Fees payable to the company's auditor for the audit of the company's financial statements
5,160
4,400
Fees payable to the company's auditor for tax compliance services
1,500
825
5
Employees

The average monthly number of persons (including directors) employed by the company during the year was:

2023
2022
Number
Number
17
18

Their aggregate remuneration comprised:

2023
2022
£
£
Wages and salaries
1,088,913
1,049,014
Social security costs
157,498
143,735
Pension costs
59,816
70,528
1,306,227
1,263,277
6
Directors' remuneration
2023
2022
£
£
Remuneration for qualifying services
507,000
532,892

The number of directors for whom retirement benefits are accruing under defined contribution schemes amounted to 3 (2022 - 3).

During the year, the company made pension contributions of £36,000 (2022 - £36,000) to money purchase schemes.

 

The total emoluments, including pension contributions, of the highest paid director were £222,983 (2022: £222,827).

SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 14 -
7
Interest payable and similar expenses
2023
2022
£
£
Interest on financial liabilities measured at amortised cost:
Interest on bank overdrafts and loans
6,202
3,374
Other interest on financial liabilities
30,000
30,000
36,202
33,374
8
Taxation
2023
2022
£
£
Deferred tax
Origination and reversal of timing differences
-
0
(31,367)

The actual charge/(credit) for the year can be reconciled to the expected charge for the year based on the profit or loss and the standard rate of tax as follows:

2023
2022
£
£
Profit before taxation
166,632
266,612
Expected tax charge based on the standard rate of corporation tax in the UK of 25.00% (2022: 19.00%)
41,658
50,656
Tax effect of expenses that are not deductible in determining taxable profit
15,612
4,540
Unutilised tax losses carried forward
-
0
9
Effect of change in corporation tax rate
(7,595)
-
0
Group relief
(49,675)
(60,787)
Deferred tax adjustments in respect of prior years
-
0
(25,785)
Taxation charge/(credit) for the year
-
(31,367)
9
Tangible fixed assets
Equipment
£
Cost
At 1 July 2022 and 30 June 2023
9,419
Depreciation and impairment
At 1 July 2022 and 30 June 2023
9,419
Carrying amount
At 30 June 2023
-
0
At 30 June 2022
-
0
SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 15 -
10
Fixed asset investments
2023
2022
Notes
£
£
Investments in subsidiaries
11
1
1
11
Subsidiaries

Details of the company's subsidiaries at 30 June 2023 are as follows:

Name of undertaking
Registered office
Class of
% Held
shares held
Direct
Sarova Properties GX Limited
11 Thurloe Place, London, England, SW7 2RS
Ordinary
100.00

In the period ending 28 February 2023, Sarova Properties GTX Limited made a loss of £50,599.

12
Debtors
2023
2022
Amounts falling due within one year:
£
£
Amounts owed by group undertakings
1,133,517
1,538,386
Other debtors
33,000
-
0
Prepayments and accrued income
57,962
39,714
1,224,479
1,578,100
Deferred tax asset (note 16)
32,178
32,178
1,256,657
1,610,278
2023
2022
Amounts falling due after more than one year:
£
£
Amounts owed by group undertakings
4,813,179
4,619,664
Total debtors
6,069,836
6,229,942
SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 16 -
13
Creditors: amounts falling due within one year
2023
2022
Notes
£
£
Bank loans and overdrafts
15
52,408
40,312
Trade creditors
109,015
95,041
Amounts owed to group undertakings
4,160,438
3,895,438
Corporation tax
100
100
Other taxation and social security
157,591
378,663
Other creditors
-
0
300,001
Accruals and deferred income
107,482
111,247
4,587,034
4,820,802
14
Creditors: amounts falling due after more than one year
2023
2022
Notes
£
£
Other borrowings
15
1,969,159
2,062,129
15
Loans and overdrafts
2023
2022
Bank overdrafts
52,408
40,312
Loans from group undertakings
1,092,500
1,092,500
Directors' loans
876,659
969,629
2,021,567
2,102,441
Payable within one year
52,408
40,312
Payable after one year
1,969,159
2,062,129
2,021,567
2,102,441
16
Deferred taxation

The following are the major deferred tax liabilities and assets recognised by the company and movements thereon:

Assets
Assets
2023
2022
Balances:
£
£
Fixed asset timing differences
32,178
32,178
There were no deferred tax movements in the year.
SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
- 17 -
17
Retirement benefit schemes
2023
2022
Defined contribution schemes
£
£
Charge to profit or loss in respect of defined contribution schemes
23,816
34,528

The company operates a defined contribution pension scheme for all qualifying employees. The assets of the scheme are held separately from those of the company in an independently administered fund.

18
Share capital
2023
2022
2023
2022
Ordinary share capital
Number
Number
£
£
Issued and fully paid
Ordinary shares of £1 each
200,000
200,000
200,000
200,000
19
Operating lease commitments

At the reporting end date the company had outstanding commitments for future minimum lease payments under non-cancellable operating leases, which fall due as follows:

2023
2022
£
£
Within one year
18,134
9,238
Between two and five years
22,502
9,079
40,636
18,317
20
Related party transactions
Transactions with related parties

During the year the company received management fees from the following companies under common control.

2023
2022
£
£
Rembrandt Hotel Limited
1,200,000
1,200,000
The Abbey Hotel Limited
60,000
60,000
The Bull Hotel Limited
200,000
200,000
The Sir Christopher Wren Hotel Limited
240,000
240,000
Sparco International Limited
100,000
100,000
1,800,000
1,800,000
SAROVA HOTELS LIMITED
NOTES TO THE FINANCIAL STATEMENTS (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2023
20
Related party transactions
(Continued)
- 18 -

Amounts due to related parties at the balance sheet date were as follows:

2023
2022
Amounts due to related parties
£
£
Rembrandt Hotel Limited
3,000,438
2,715,438
The Abbey Hotel Limited
-
20,000
The Bull Hotel Limited
160,000
160,000
Sparco International Limited
1,000,000
1,000,000
Key management personnel
876,659
969,629
Stargate Holdings Limited
1,092,500
1,092,500

Amounts due from related parties at the balance sheet date were as follows:

2023
2022
Amounts due from related parties
£
£
The Sir Christopher Wren Hotel Limited
5,309,469
5,711,024
Sparco International Limited
240,000
260,000
Stargate Holdings Limited
96,548
79,862
Sarova Properties (GX) Limited
300,679
107,164
21
Events after the reporting date

On 18 November 2023, the company's subsidiary Sarova Properties (GX) Limited completed the purchase of a property with the intention of converting to a spa facility. The balancing payment of £1.8m was funded by Sarova Hotels Limited and is interest free and repayable on demand.

22
Directors' transactions

The company pays interest of 4% per annum on the director's loan balance of £750,000 (2022 - 4% on the loan balance of £750,000).

 

At the year end, the company owed directors £126,659 (2022: £219,629) in respect of unpaid wages. This amount is interest free and payable on demand.

23
Ultimate controlling party

The immediate parent company is Stargate Holdings Limited, a company incorporated in the British Virgin Islands.

 

The ultimate controlling party is Vohra family interests.

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